Ending Corporate Bankruptcy Abuse Act of 2024

HR 9110, the Ending Corporate Bankruptcy Abuse Act of 2024, tightens rules for Chapter 11 bankruptcy cases to prevent corporate abuse. It requires courts to dismiss cases within 24 months of filing (amending Section 1112(b)), and establishes new criteria for dismissing cases filed in "bad faith" (e.g., to delay creditors, gain litigation advantages, or cap liability to multiple creditors). The bill also defines "protected claims" (like product liability claims affecting 100+ people or claims tied to corporate restructuring) and bars lawsuits against non-debtors related to these claims during bankruptcy. This primarily affects corporations restructuring via mergers, spinoffs, or corporate reorganizations within 4 years of filing.